By Paul Latham
Most of your business owner clients will be working to grow their business revenues and profits.
Most business owners instinctively assume that in order to grow their revenues they will also need to grow people/team resources to help them deliver their service.
We believe that the area of “Right Resources” to grow represents the biggest single business change in terms of business strategic advice in the last quarter century.
There was a time – in the 20th Century – when the answer to that question was obvious. If business owners wanted to grow their business then they used more tangible physical resources (like machinery and buildings) or employed more people resources. That was how a business delivered growth.
Today – in the 21st Century – the answer is usually different. There has been a huge shift towards the use of intangible resources to deliver growth.
We now have “virtual people” – we sub-contract expertise, we have “virtual management” – we outsource our CFO or CMO.
Our most important resources are intangible – we work from home in “virtual offices” making better use of technology. Technology itself is a virtual resource, it’s “very difficult to touch”. These intangible resources make a business delivery more efficient and more effective.
Intangible assets include things like data and brand and processes and knowledge and relationships. These resources make a business more valuable.
Today it’s a fact that 80% of average business value is intangible.
However business owners need to work at making those intangibles more “solid” and less “fluid” if we really want to maximize business potential and grow long-term capital value.
The evidence is all around us. Encourage your business owner clients to think about businesses like Amazon, Uber or Airbnb as inspiration. CPAs need to recognize that too many of their business owner clients remain rooted in a 20th Century mindset.
If your business owner clients want to significantly grow their business then don’t let them remain content to only consider increasing traditional resources – instead encourage them to think virtual – think outsource – think intangible.
If you are a 21st Century CPA you have a fiduciary duty to help your business owner clients to Maximize Business Potential. You should be encouraging your best clients to use the “Right Resources” to grow – and we can show you HOW.